Hollinger - Court Orders Lord Conrad Black to Turn Over Computer Hard Drives - Bloomberg - 25Aug2005



http://www.bloomberg.com/apps/news?pid=10000102&sid=apK4_pQ8Oy0w&refer=uk
Bloomberg
25Aug2005
Black's Computer Drives Sought by Justice Department (Update2)

Aug. 25 (Bloomberg) -- The U.S. Justice Department asked Conrad Black's
former holding company to turn over computer hard drives to a grand jury
investigating allegations that he siphoned money from Chicago Sun-Times
publisher Hollinger International Inc.

Hollinger Inc. was served with a subpoena for the hard drives last week,
Anthony Kelly, the company's lawyer, said today at a hearing in Toronto.
Ernst & Young LLP has them and must get Black's permission or a court order
before it can turn them over, Kelly said. Black has refused, Kelly said.

``We want to demonstrate that we're being cooperative'' Kelly told Ontario
Superior Court judge Colin Campbell at today's hearing. Lawyers planned to
schedule a date for a hearing where Toronto-based Hollinger would get a
court order to turn over the drives.

Black and former deputy David Radler are accused by Hollinger International
of looting more than $425 million, in part by collecting bogus
non-competition payments. Radler, who was indicted Aug. 18 on federal fraud
charges, plans to plead guilty in Chicago on Sept. 15, said his lawyer,
Anton Valukas.

``This will be dealt with in the proper legal forum,'' Black's spokesman
Jeff McAndrews said in a telephone interview. ``It would not be appropriate
to comment further outside that forum.'' Black has denied wrongdoing in the
case.

Randall Samborn, a spokesman for the U.S. attorney's office in Chicago,
declined to comment.

Campbell last year appointed Ernst & Young, the third- largest U.S.
accounting firm, to investigate transactions of companies controlled by
Black. Hollinger Inc. has voting control and a 17 percent stake in Hollinger
International. Black is no longer affiliated with either company.

Documents Removed

Campbell separately ordered Radler to turn over boxes of documents that were
taken on Aug. 18 from his office in Vancouver.

Radler agreed to turn the papers over to the court-appointed inspector under
the condition that they be sealed, said his lawyer, Sean Dewart. Campbell's
order bars Radler from entering his offices without the permission of the
inspector.

``Mr. Radler removed documents that had nothing to do with the litigation,''
Dewart said. ``They're his documents.''

Black in May was caught on camera loading boxes of documents into his car
and was ordered to return them. Campbell had ordered in November that no
documents could be removed from Hollinger Inc. headquarters without the
permission of a court-appointed monitor.

A date hasn't been set for a hearing into whether Black is in contempt of
court.

The case is Catalyst Fund General Partner I Inc. v. Hollinger Inc.,
04-CL-5563, Ontario Superior Court of Justice, Ontario.

To contact the reporter on this story:
Joe Schneider in Toronto at jschneider5@xxxxxxxxxxxxxx

Last Updated: August 25, 2005 19:43 EDT
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